Fresenius SE & Co. KGaA — Call Transcript 2022

May 4, 2022

Conference Call │ Q1/22 Results

Bad Homburg, 04 May 2022

Safe Harbor Statement

This presentation contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing.

Fresenius does not undertake any responsibility to update the forward-looking statements contained in this presentation.

Agenda

Key messages

4

Agenda

Fresenius Kabi: Strategic growth strengthened with two attractive acquisitions; macro challenges weigh on financial performance; biosimilar business with continuous progress

North America Europe

Q1/22 marked by high level of staff absenteeism due to Omicron wave, ongoing competitive pressure and macro challenges

Early indications show that GPO tendering progresses in line with expectations

Ivenix acquisition successfully closed

Cost inflation weighing on financial performance

Prior year quarter inflated by positive one-time items

Asia-Pacific

China more than compensated significant NVBP related price pressure with dynamic volume growth of products not affected by national tendering

APAC ex China with good business performance in Q1/22

Biosimilars

Adalimumab biosimilar continues good sales development in Europe; US approval on track

Pegfilgrastim biosimilar received European Commission marketing authorization; FDA pre-approval inspection expected in Q2/22

Tocilizumab progresses in line with expectations

FDA approval for Bevacizumab biosimilar developed by mAbxience out-licensed to Amneal Pharmaceuticals, Inc

Fresenius Helios: Positive trend in admissions in Germany continues; strong quarter at Helios Spain driven by continued activity growth

Helios Germany Helios Spain Helios Fertility

Admissions with 11% increase year-over-year

Number of Omicron patients in ICUs low and further decreasing; slight increase in normal wards in March

COVID-related staff absenteeism normalized end of the quarter

Forsa patient survey indicates increasing patient willingness to have hospital medical treatments

Overall strong activity levels

Omicron hospitalization peak in late January, limited financial impact in Q1

Latin American operations have also shown strong results

Slower than expected activity in January due to COVID-related restrictions; since mid-February picking up quickly

Acquisition of two IVF clinics in Brazil and one in the U.S.

Further bolt-on acquisitions expected in FY/22

Fresenius Vamed: Service business with continued progress back to normal operations; macro challenges at project business weigh on growth

Macro challenges

• Easing COVID-19 effects remain a headwind
• Supply chain challenges weigh on project business

Service business showing good performance

• Rehabilitation business supported by upward trend in elective treatment activity
• Strong contribution from high-end services

Project business – order intake remains at a high level

• Sales in project business decreased by 5% in Q1/22 due to COVID-19 and supply chain challenges
• Excellent order intake in Q1/22 increased by 91% versus prior year; order backlog at €3.63bn

Major turnkey contract in Q1/22:

• Mother & Child Hospital in Guyana (€144 m; rendering above)

Agenda

Q1/22 Profit and Loss Statement

All growth rates in constant currency (cc) Before special items Net income attributable to shareholders of Fresenius SE & Co. KGaA

Q1/22 Business Segment Growth

All figures before special items

For a detailed overview of special items please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Q1/22 Cash Flow

	Operating CF		Capex (net)		Free Cash Flow1
€m	Q1/2022	LTM Margin	Q1/2022	LTM Margin	Q1/2022	LTM Margin
	159	13.6%	-160	-4.5%	-1	9.1%
	133	14.5%	-94	-6.9%	39	7.6%
	-136	7.6%	-91	-5.2%	-227	2.4%
	-45	6.4%	-9	-2.8%	-54	3.6%
Corporate	-10	n.a.	-2	n.a.	-12	n.a.
Excl. FMC ²	-58	10.9%	-196	-5.7%	-254	5.2%
	101	11.8%	-356	-5.1%	-255	6.7%

¹ Before acquisitions and dividends

² Including FMC dividends

Agenda

FY/22 Financial Outlook by Business Segment

€m (except	otherwise stated)		FY/21 Base	Q1/22	FY/22e
		Sales growth (org)	7,193	1%	Low single-digit %
		EBIT growth (cc)	1,153	0%	Decline in high single- to low double-digit %-range
		Sales growth (org)	10,891	8%	Low-to-mid single-digit %
		EBIT growth (cc)	1,127	15%	Mid single-digit %
		Sales growth (org)	2,297	7%	High single- to low double-digit %
		EBIT	101	8	Returning to absolute pre-COVID levels (2019: €134 m)

Before special items and including COVID-19 effects

For a detailed overview of special items please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

FY/22 Financial Guidance

€m (except otherwise stated)		FY/21 Base	Q1/22	FY/22e
	Sales growth (cc)	37,520	5%	Mid single-digit %
	Net income growth (cc)	1,867	3%	Low single-digit %

Before special items and including COVID-19 effects Net income attributable to shareholders of Fresenius SE & Co. KGaA

For a detailed overview of special items please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Attachments

Total sales	1,847	1%
Emerging Markets	628	3%
Europe	640	2%
North America	579	-3%
€m	Q1/22	Δ YoY organic

Total sales	1,847	1%
Biosimilars	23	++
Infusion Therapy	230	14%
Medical Devices/ Transfusion Technology	357	1%
Clinical Nutrition	554	5%
IV Drugs	683	-8%
€m	Q1/22	Δ YoY organic

Fresenius Kabi: Q1/22 EBIT Growth

€m	Q1/22	Δ YoY cc
North America	156	-17%
Margin	26.9%	-430 bps
Europe	81	-33%
Margin	12.7%	-630 bps
Emerging Markets	173	29%
Margin	27.5%	+570 bps
Corporate and Corporate R&D	-117	23%
Total EBIT	293	0%
Margin	15.9%	+20 bps

All figures before special items

Margin growth at actual rates

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Helios: Q1/22 Key Financials

€m	Q1/22	Δ YoY cc
Total sales	2,931	8%1
Thereof Helios Germany	1,783	5%1
Thereof Helios Spain	1,089	11%1
Thereof Helios Fertility	57	--
Total EBIT Margin	306 10.4%	15% +30 bps
Thereof Helios Germany Margin	154 8.6%	3% -40 bps
Thereof Helios Spain Margin	153 14.0%	22% +110 bps
Thereof Helios Fertility Margin	4 7.0%	-- --
Thereof Corporate	-5	--

¹ Organic growth

All figures before special items

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Helios: Key Metrics

	Q1/22	FY/21	Δ
Helios Germany
Hospitals - Acute care hospitals	88 85	90 87	-2% -2%
Beds - Acute care hospitals	30,473 29,941	30,487 29,955	0% 0%
Admissions (acute care)	263,545	1,048,946
Helios Spain
Hospitals	58	56	4%
Beds	8,225	8,174	1%
Admissions (including outpatients)	4,738,943	17,122,592

Fresenius Vamed: Q1/22 Key Financials

€m	Q1/22	Δ YoY cc
Total sales Thereof organic sales	513	7% 7%
Service business	405	11%
Project business	108	-5%
EBIT1 Total	8	--
Order intake2	263	91%
Order backlog2	3,626	4%3

¹ Before special items

² Project business only

³ Versus December 31, 2021

Fresenius Group: Q1/22 Key Financials

€m	Q1/221	special items	Q1/22 reported	YoY cc1 Δ
Sales	9,720	-	9,720	5%
EBIT	996	-94	902	-5%
Net interest	-119	1	-118	16%
Income taxes	-199	14	-185	4%
Net income2	462	-49	413	3%

¹ Before special items

2 Net income attributable to shareholders of Fresenius SE & Co. KGaA

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Group: Calculation of Noncontrolling Interests

€m	Q1/22	Q1/21
Earnings before tax and noncontrolling interests	877	872
Taxes	-199	-199
Noncontrolling interests, thereof	-216	-237
Fresenius Medical Care net income not attributable to Fresenius (Q1/22: ~68%)	-135	-169
Noncontrolling interest holders in Fresenius Medical Care	-55	-55
Noncontrolling interest holders in Fresenius Kabi (-€19 m), Fresenius Helios (-€5 m), Fresenius Vamed (-€1 m) and due to Fresenius Vamed's 23% external ownership (-€1 m)	-26	-13
Net income attributable to Fresenius SE & Co. KGaA	462	436

Before special items For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Group: Cash Flow

€m	Q1/22	LTM Margin	Δ YoY
Operating Cash Flow	101	11.8%	-85%
Capex (net)	-356	-5.1%	13%
Free Cash Flow	-255	6.7%	--
(before acquisitions and dividends)
Acquisitions (net)	-92
Dividends	-56
Free Cash Flow (after acquisitions and dividends)	-403	1.8%	--

Fresenius Group: Estimated COVID-19 Effects Q1/22

	Growth cc as reported incl. COVID-19		Estimated COVID-19 impact	cc	Estimated growth cc excl. COVID-19
	Q1/22	Q1/21	Q1/22	Q1/21	Q1/22	Q1/21
Sales	5%	3%	0% to -1%	-1% to -2%	5% to 6%	4% to 5%
Net income1	3%	-2%	5% to 1%	-2% to -6%	-2% to 2%	0% to 4%

1 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items

Fresenius Group: Proven Track Record of Deleveraging

Net Debt/EBITDA1

2002-2019 excluding IFRS 16

¹ At actual FX rates from 2002 to 2010 and at average FX rates from 2011 onwards, for both Net Debt and EBITDA; before special items; pro forma closed acquisitions/divestitures

² Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG

³ Including IFRS 16

Fresenius Group: Well-balanced maturity profile1

¹ As of March 31, 2022, and based on utilization of major financing instruments, excl. Commercial Paper 2 Schuldschein Loan repaid at maturity on April 7, 2022

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Fresenius Group: Sales by Business Segment – FX, Acquisitions/Divestitures Effects Q1/22

€m	Q1/22	Q1/21	Growth at actual rates	Currency translation effects	Growth at constant rates	Organic growth	Acquisi tions	Divesti tures/ Others
Fresenius Medical Care	4,548	4,210	8%	5%	3%	2%	1%	0%
Fresenius Kabi	1,847	1,761	5%	4%	1%	1%	0%	0%
Fresenius Helios	2,931	2,649	11%	0%	11%	8%	3%	0%
Fresenius Vamed	513	477	8%	1%	7%	7%	0%	0%
Total	9,720	8,984	8%	3%	5%	3%	2%	0%

Financial Calendar / Contact

Financial Calendar Contact

02 August 2022 Results Q2/22 01 November 2022 Results Q3/22

13 May 2022 Annual General Meeting

Investor Relations & Sustainability Fresenius SE & Co. KGaA phone: +49 6172 608-2485 e-mail: ir-fre@fresenius.com

For further information and current news: www.fresenius.com

www.twitter.com/fresenius\_ir

www.linkedin.com/company/fresenius-investor-relations

Please note that these dates could be subject to change.